Kentucky HB 677: AN ACT relating to energy production and byproduct management.

Bill Text

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AN ACT relating to geologic sequestration of carbon dioxide. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO 3
READ AS FOLLOWS: 4
The purposes of Sections 1 to 24 of this Act are to: 5
(1) Establish a legal and regulatory framework for the development and approval of 6
underground carbon dioxide sequestration facilities; 7
(2) Designate a government agency responsible for establishing standards and 8
promulgating administrative regulations for the development and approval of 9
underground carbon dioxide sequestration and sequestration facilities; 10
(3) Safeguard and protect the correlative rights of operators, mineral owners, pore 11
space owners, and surface owners and provide for just and reasonable 12
compensation for their respective interests in underground carbon dioxide 13
sequestration facilities; and 14
(4) Ensure that long-term geologic sequestration of carbon dioxide in the 15
Commonwealth is accomplished without unreasonable disturbance of surface, 16
mineral, or water resources or endangering public safety. 17
SECTION 2. A NEW SECTION OF KRS CHAPTER 353 IS CREATED TO 18
READ AS FOLLOWS: 19
As used in Sections 1 to 24 of this Act: 20
(1) "Administratively complete," with respect to an application means an application 21
for permit approval that the cabinet determines contains: 22
(a) Information addressing each application requirement of the regulatory 23
program; and 24
(b) All information necessary to initiate technical processing and public review; 25
(2) "Cabinet" means the Energy and Environment Cabinet; 26
(3) "Carbon dioxide" means anthropogenic carbon dioxide of sufficient purity and 27

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quality as to not compromise: 1
(a) The safety of geologic sequestration; and 2
(b) Those properties of the sequestration reservoir which allow the reservoir to 3
effectively enclose and contain a stored gas; 4
(4) "Carbon dioxide sequestration" means the injection of carbon dioxide and 5
associated constituents into subsurface geologic reservoirs intended to provide for 6
the long-term containment of a gaseous, liquid, or supercritical carbon dioxide 7
stream in subsurface geologic formations and thereby prevent its release into the 8
atmosphere; 9
(5) "Class II well" has the same meaning as in KRS 353.510; 10
(6) "Class VI injection well" or "Class VI well" means the classification by the US 11
EPA of wells for injection of substances or materials into subsurface rock 12
formations and, specifically, to the class of wells that are used to inject carbon 13
dioxide into subsurface rock formations; 14
(7) "Class VI underground injection control permit" or "Class VI permit" means a 15
permit for a specified site authorizing a person or business entity to construct and 16
operate a carbon dioxide sequestration facility issued by the: 17
(a) US EPA prior to granting the cabinet primary enforcement authority; or 18
(b) Cabinet after primary enforcement authority is granted by the US EPA; 19
(8) "Completion certificate" means a Certificate of Underground Carbon Dioxide 20
Sequestration Project Completion; 21
(9) "Control person" has the same meaning as in KRS 353.510; 22
(10) "Drilling permit" means a permit issued by the cabinet to drill a well or convert 23
an existing well for the purposes of constructing a Class VI underground 24
injection control facility; 25
(11) "Gas well" has the same meaning as in KRS 353.010; 26
(12) "Monitoring well" means a well authorized under a Class VI underground 27

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injection control permit that is designed and completed in a specified subsurface 1
interval to monitor pressure, fluid chemistry, or other parameters to confirm 2
containment of injected carbon dioxide within the sequestration reservoir and 3
confining system and to demonstrate non-endangerment of underground sources 4
of drinking water; 5
(13) "Oil well" has the same meaning as in KRS 353.010; 6
(14) "Person" has the same meaning as in KRS 353.510; 7
(15) "Pore space" means a cavity or void, whether naturally or artificially created, in 8
subsurface stratum beneath individual properties within a reservoir into which 9
injection of carbon dioxide is proposed; 10
(16) "Reservoir" means a subsurface stratum, formation, cavity, or void, whether 11
naturally or artificially created, including oil and gas reservoirs, saline 12
formation, and coal seams suitable for, or capable of being made suitable for, the 13
injection and storage of carbon dioxide; 14
(17) "Secretary" means the secretary of the Energy and Environment Cabinet; 15
(18) "Sequestration facility" means the reservoir, well, underground equipment, and 16
surface facilities and equipment